Staples to Acquire Office Depot for $6.3 Billion
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Justin Sullivan/Getty Images(FRAMINGHAM, Mass.) — The two biggest office supply retailers in the U.S. are merging.
Staples announced on Wednesday it has entered into a definitive agreement to buy Office Depot for $6.3 billion.
“This is a transformational acquisition which enables Staples to provide more value to customers, and more effectively compete in a rapidly evolving competitive environment,” Staples CEO Ron Sargent said in a press release. “We expect to recognize at least $1 billion of synergies as we aggressively reduce global expenses and optimize our retail footprint.”
Those savings are expected to come through “headcount and general and administrative expense reductions, efficiencies in purchasing, marketing, and supply chain, retail store network optimization, as well as sharing of best practices,” Staples said.
The merger is still subject to antitrust regulatory approval and is expected to close by the end of this year. Once complete, Staples will add two more members to its board of directors. Its headquarters will remain in Framingham, Massachusetts and Sargent will continue as the company’s chairman and CEO.
Staples began discussions to acquire Office Depot, which had previously acquired Office Max, last September.
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